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Baner Club > Blog > News > What is the pro rata method of calculating electricity bills?
NewsPakistan

What is the pro rata method of calculating electricity bills?

An FIA probe blames the method for hefty power bills that led to public reaction

Last updated: 2024/07/10 at 3:25 PM
Published July 10, 2024
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According to a Federal Investigation Agency (FIA) investigation, the so-called “pro rata system” is to blame for the nation’s overbilling of power customers, particularly those who were previously covered under the non-protected group.

Hundreds of thousands of customers were thrown from “protected” slabs to non-protected slabs by the pro rata method used to calculate electricity tariff slabs, and as a result, their electricity bills increased dramatically. There are rumors that the system will be discontinued by the government.

In its report to the prime minister on Wednesday, the FIA stated that the energy ministry implemented the pro rata system, which resulted in large bills. Thus, accountability should be placed on those working in the energy ministry.

For the majority of Pakistanis, the word “pro rata” is relatively new. You might be wondering what it means and how it’s applied to power use in Pakistan. Pro rata, to put it simply, is an estimate of the “average” daily usage of power. Pro rata refers to proportionately.

Pro rata system examples
If you are a member of the millennial generation, you might remember that power bills once had a column regarding the various meter reading modes, with the word “average” appearing frequently. It simply meant that instead of visiting your home and taking a reading from the meter, the power distribution company was sending you an electricity bill. The “average” bill considered the pattern of your power usage.

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BanerClub July 10, 2024 July 10, 2024
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